Investment Q&A

Q: Dividend rates - stock seem to be popular when they have a high dividend rates . A stock paying 4% making a payout (will say quarterly), pays the 4% then the stock drops 4%, so what you get on one hand is taken away on the other. Basically, a growth stock would be a better play than a dividend stock. Please give me your opinion.

Q: Are there any articles in your Bloomberg library or other sources that would be a good read featuring an unbiased { good luck } analysis of what the protectionist policies amount to be implemented in the USA may lead to ? I would love to know how this can possibly avoid spiking the rate of inflation.

Thank you

Paul

Q: at 1.40 and heading lower, why would anyone invest in Canadian stocks or bonds for that matter.?..also why cant the government get their house in good financial order to show to the rest of world that we care about balancing the budget? pissed off snow bird...

Q: there are some well known professionals predicting the USA stock market currently points to a bursting bubble , and investors should allocate heavily into bonds to protect the portfolio.If the risk of this happening is drawing near, will the Canadian markets suffer the same fate ?

Q: Is it time in the market that truly matters instead of trying to time the market?

Q: Hi Peter & team - I've seen you, and others, say there is still lots of money "parked on the sidelines". How do you know this? Where is it parked? And how do you know it will be deployed in the market? Thank you!

Q: I turned 71 this year and I am pulled between GROWTH & DIVIDEND stocks in my RRIF starting in January. Am I wrong in thinking that it does not make a difference, if: (I do have growth stocks in my Cash & TFSA accounts).
My Tech & other Growth stocks appreciate by 6% or more and I withdraw 6 % via my RRIF, or
Withdraw 6% of my Dividend stocks? Compounding does work, as I bought $20K of RBC a few years ago @ $112 & is now @ $172. Tried the same with TD which did not work.
Obviously, the idea is to not deplete my assets by the RRIF withdrawals? Am I right in my thinking?

Thanks!

Q: Good morning,

Recently I have become concerned about the potential for a US sovereign debt crisis. From my understanding the amount of US debt is growing at an unsustainable rate and eventually it will become apparent that the US cannot pay back its debt while offering a real return to investors. Once this happens the US will have an issue borrowing money because there is a lack of lenders which will lead to them either having to cut back services (which would almost certainly cause a recession), defaulting because they can't roll over their debt (also causing a recession) or trying to change the rules of the fed to try and print the debt away (which would cause almost nobody to lend money to the US government again and almost certainly cause hyper inflation). To me any action that would involve cutting back services which would be better for the long term but really bad (and political suicide) for the short term would probably not be implemented because the politicians would be voted out. This line of thinking terrifies me and I am really hoping that I am missing something. Am I correct with my analysis? Is there anything that I am missing?

Thanks,
A

Q: Donald Trump has previously signaled his desire for a lower US dollar. JD Vance has recently signalled an even stronger desire for a lower dollar, saying it would bring manufacturing back and calling China a currency manipulator. And if history is any indicator, Vance will be running just about everything in the day-to-day operations of the White House while Trump golfs and engages in twitter wars with celebrities (as Pence did 4 years ago). Right now most of my US holdings are in unhedged ETFs. Would it be wiser to shift some of that over to hedged ETFs? If the US starts trying to lower the dollar how quickly would that happen?

Q: What are some canadain companies that could do well under a trump administration

Q: Hello:

First, athis point and post-election, do you think the markets have gotten ahead of themselves?

Second, markets are enjoying a post US election upswing and while most expect further interest rate cuts, why are utilities down in the past fewdays, for example CPX and FTS.

Thank you

Q: Where would 5i see things in terms of an ideal cash level in a portfolio today? Fully deployment or is there a % you would reserve in cash for opportunities in a bad day/week/month? Would you agree that volatility should be expected in the months ahead based on Trump's comments moving the market as they did in the past?

Q: Everyone, what are the next headwinds and when will they show up in the markets. Clayton

Q: Hello 5i,
I caught a headline on BNN regarding BofC sentiment around interest rates. I took from it that the BOC might be poised for a much larger cut than it has done so far, perhaps 0.75, even 1.0 bp cut. Now, with a Trump win and policies that could fuel Canadian inflation by increasing the cost of U.S. imports on the one hand and a potential dampening effect on the Canadian economy as whole on the other, do you see any strong sense of direction for Canadian interest rate policy for the next meeting in December?
I know this kind of prognostication is problematic, but I would value your insights as to what Canadians might reasonably expect from the Bank of Canada on Dec. 11.
Many thanks for any analysis you can provide.
Cheers,
Mike

Q: What is your take on near to mid term inflation, rates and bond prices/yields based on proposed US tax cuts?

Q: Dear 5i team.

The common theory of interest rates decling was long bonds would benifit most. This does not appear to be the case currently, and I've seen some not so clear responses thus far in the Q+A. Please explain in further detial, why long bonds have not performed to this expectation thus far, and what you see as a catalyst for long bonds to perform as expected with possible future declining interest rates..

Many thanks for your help.

Q: If the S&P were to drop 5-7% as Fund Strat is suggesting between now and the end of November, are there any specific stocks or sectors that 5i thinks would be hurt the most.

FS has an enviable record of calling market trends accurately. And not being doom and gloomers. In fact they are still calling for further upside in total out to the end of the year.

Of course no one is right all the time. But I have been looking to raise some cash and this might be a good time to do so.

Thank you for your help.

Q: If Trump were to win the US Election he suggested he would create a Dept overseen by Elon Musk to reduce US spending by 1/3rd. One of his targets is Green Energy which clearly he would be happy to eliminate.

How would this affect Renewable Producers like BEPC. Northland Power. Algonquin and other TSX wind n Solar Producers with operations in the US as well as other Canadian Power Generators like Capital Power and Altagas?

Would Trump go as far as to reduce the mandated usage of corn based ethanol or this would not be a target as it would hurt the US Ag industry?

Q: With the US election coming up on Nov 5 2024 when there is going to be volatility, what are some companies on 5i's hit list?

Q: The Canadian Dollar has weakened against the US and is reaching relatively historic lows (for the last 10 years). For Registered accounts like an RRSP and TSFA where there are no tax implications of selling, would you support the switch from Non-hedged ETFs to CAD-Hedged ETFs? For example, the switch from XUU.CA to XUH.CA